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Rush Enterprises, Inc. Reports Third Quarter 2024 Results, Announces $0.18 Per Share Dividend

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Rush Enterprises (NASDAQ: RUSHA) reported Q3 2024 results with revenues of $1.896 billion and net income of $79.1 million, or $0.97 per diluted share, compared to revenues of $1.981 billion and net income of $80.3 million in Q3 2023. The company faced challenging market conditions with low freight rates and high interest rates impacting Class 8 truck demand. Aftermarket products and services accounted for 61.5% of total gross profit, with revenues of $633.0 million. The company achieved a 132.6% absorption ratio and declared a $0.18 per share dividend for both Class A and B shares.

Rush Enterprises (NASDAQ: RUSHA) ha riportato i risultati del terzo trimestre del 2024 con ricavi di 1,896 miliardi di dollari e un reddito netto di 79,1 milioni di dollari, ovvero 0,97 dollari per azione diluita, rispetto a ricavi di 1,981 miliardi di dollari e un reddito netto di 80,3 milioni di dollari nel terzo trimestre del 2023. L'azienda ha affrontato condizioni di mercato difficili, con bassi tassi di nolo e alti tassi di interesse che hanno influito sulla domanda di camion di Classe 8. I prodotti e servizi aftermarket hanno rappresentato il 61,5% del profitto lordo totale, con ricavi di 633 milioni di dollari. L'azienda ha ottenuto un rapporto di assorbimento del 132,6% e ha dichiarato un dividendo di 0,18 dollari per azione sia per le azioni di Classe A che di Classe B.

Rush Enterprises (NASDAQ: RUSHA) informó los resultados del tercer trimestre de 2024 con ingresos de 1.896 millones de dólares y una ganancia neta de 79,1 millones de dólares, o 0,97 dólares por acción diluida, en comparación con ingresos de 1.981 millones de dólares y una ganancia neta de 80,3 millones de dólares en el tercer trimestre de 2023. La empresa enfrentó condiciones de mercado desafiantes, con tarifas de flete bajas y altas tasas de interés afectando la demanda de camiones de Clase 8. Los productos y servicios de posventa representaron el 61,5% del beneficio bruto total, con ingresos de 633 millones de dólares. La empresa logró una relación de absorción del 132,6% y declaró un dividendo de 0,18 dólares por acción tanto para las acciones de Clase A como de Clase B.

러시 엔터프라이즈(Rush Enterprises) (NASDAQ: RUSHA)는 2024년 3분기 실적을 발표하며 전 Revenue 189억6천만 달러순이익 7천9백1십만 달러 또는 희석 주당 0.97달러를 기록했으며, 2023년 3분기에는 199억8천1백만 달러의 수익과 8천3백만 달러의 순이익을 보였습니다. 회사는 저조한 화물 요금과 높은 이자율이 클래스 8 트럭 수요에 영향을 미치는 어려운 시장 조건에 직면했습니다. 애프터마켓 제품 및 서비스는 총 총 이익의 61.5%를 차지하며, 수익은 6억3천3백만 달러에 달했습니다. 회사는 132.6%의 흡수 비율을 달성했으며, 클래스 A 및 B 주식에 대해 주당 0.18달러의 배당금을 선언했습니다.

Rush Enterprises (NASDAQ: RUSHA) a annoncé les résultats du troisième trimestre 2024 avec un chiffre d'affaires de 1,896 milliard de dollars et un bénéfice net de 79,1 millions de dollars, soit 0,97 dollar par action diluée, par rapport à un chiffre d'affaires de 1,981 milliard de dollars et un bénéfice net de 80,3 millions de dollars au troisième trimestre 2023. L'entreprise a été confrontée à des conditions de marché difficiles, avec des taux de fret bas et des taux d'intérêt élevés ayant un impact sur la demande de camions de Classe 8. Les produits et services après-vente ont représenté 61,5% du bénéfice brut total, avec des revenus de 633 millions de dollars. L'entreprise a atteint un ratio d'absorption de 132,6% et a déclaré un dividende de 0,18 dollar par action pour les actions de Classe A et B.

Rush Enterprises (NASDAQ: RUSHA) berichtete über die Ergebnisse des dritten Quartals 2024 mit Einnahmen von 1,896 Milliarden Dollar und einem Nettogewinn von 79,1 Millionen Dollar, oder 0,97 Dollar pro verwässerter Aktie, im Vergleich zu Einnahmen von 1,981 Milliarden Dollar und einem Nettogewinn von 80,3 Millionen Dollar im dritten Quartal 2023. Das Unternehmen sah sich herausfordernden Marktbedingungen gegenüber, bei denen niedrige Frachtraten und hohe Zinssätze die Nachfrage nach Lkw der Klasse 8 beeinträchtigten. Nachmarktprodukte und -dienstleistungen machten 61,5% des gesamten Bruttogewinns aus, mit Einnahmen von 633 Millionen Dollar. Das Unternehmen erreichte ein Absorptionsverhältnis von 132,6% und erklärte eine Dividende von 0,18 Dollar pro Aktie für sowohl die Klasse A als auch die Klasse B Aktien.

Positive
  • 4.2% increase in Class 4-7 medium-duty vehicle sales compared to Q3 2023
  • Strong absorption ratio of 132.6%
  • Healthy demand across medium-duty customer segments
  • 1.8% increase in used commercial vehicle sales
Negative
  • Revenue decreased 4.3% year-over-year to $1.896 billion
  • 16.7% decrease in new Class 8 truck sales compared to Q3 2023
  • Aftermarket revenue down 1.6% year-over-year to $633.0 million
  • $3.3 million pre-tax charge from Hurricane Helene damage

Insights

Rush Enterprises delivered a resilient Q3 2024 performance despite challenging market conditions. Key metrics include $1.896 billion in revenue (down 4.3% YoY) and net income of $79.1 million ($0.97 per diluted share). The company maintained a strong absorption ratio of 132.6%. Aftermarket services, contributing 61.5% of gross profit, showed resilience with $633.0 million in revenue. While Class 8 truck sales declined 16.7% YoY, medium-duty vehicle sales increased 4.2%. The $0.18 dividend and continued share repurchases demonstrate financial stability. The company's diversified revenue streams and strategic focus on specialty markets have helped maintain profitability despite industry headwinds.

The commercial vehicle market faces significant headwinds from low freight rates and high interest rates, particularly impacting Class 8 demand. However, bright spots exist in vocational and public sector segments. The medium-duty market remains healthy across segments, outperforming broader market trends. Used truck market conditions are stabilizing with normal depreciation rates. The forecast suggests continued weakness in Class 8 sales until late 2025, while medium-duty sales are expected to grow 2.5% in 2024. The aftermarket segment shows early signs of recovery, with sequential growth in over-the-road and wholesale customers for the first time since 2023.
  • Revenues of $1.9 billion, net income of $79.1 million
  • Earnings per diluted share of $0.97
  • Challenging market conditions impact aftermarket sales and overall financial performance
  • Absorption ratio 132.6%
  • Board declares cash dividend of $0.18 per share of Class A and Class B common stock

SAN ANTONIO, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that for the quarter ended September 30, 2024, the Company achieved revenues of $1.896 billion and net income of $79.1 million, or $0.97 per diluted share, compared with revenues of $1.981 billion and net income of $80.3 million, or $0.96 per diluted share, in the quarter ended September 30, 2023. In the third quarter of 2024, the Company recognized a one-time, pre-tax charge of approximately $3.3 million, or $0.03 per share, related to property damage caused by Hurricane Helene. In the third quarter of 2023, the Company recognized a one-time, pre-tax charge of approximately $2.5 million, or $0.02 per share, related to a fire loss at our San Antonio, Texas facility. Additionally, the Company’s Board of Directors declared a cash dividend of $0.18 per share of Class A and Class B Common Stock, to be paid on December 12, 2024, to all shareholders of record as of November 12, 2024.

“As we have experienced for the last several quarters, the industry continues to struggle with low freight rates and high interest rates, resulting in continued weak demand for Class 8 trucks. Considering these ongoing challenges, we are pleased with our overall financial performance in the third quarter,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer, and President of Rush Enterprises. “Although sluggish industry conditions continue to negatively impact over-the-road-carriers, we saw positive results in the quarter with respect to our Class 8 vocational and public sector customers. In addition, demand from our medium-duty customers remained healthy throughout the quarter, enabling us to outperform the market. While the used truck market remains difficult, our used truck operations are executing well, managing inventory levels to market conditions while also making strong contributions to our earnings,” he continued. “In the aftermarket, we saw a slight improvement in our revenue compared to our second quarter results, particularly with respect to our service sales, which outperformed the market,” Rush said.

“Looking toward the remainder of the year and the beginning of 2025, although we believe freight rates have found their bottom, we do not anticipate any significant recovery in new Class 8 truck sales until sometime later in 2025. We will continue to rely on the talents of our professional sales force to uncover opportunities to leverage our “One Team” sales approach and fight for market share growth. Despite the tough industry conditions, we expect that our Class 8 and Class 4-7 new commercial vehicle sales will improve in the fourth quarter compared to the third quarter,” explained Rush. “Although we expect a typical seasonal decline in our fourth quarter aftermarket results, we believe market conditions will begin to slowly improve during the first quarter of 2025,” he continued.

“It is important that I express my gratitude to our employees for their hard work this quarter. I am especially grateful for their ability to remain focused on our long-term goals despite challenging market conditions, while also continuing to provide best-in-class service to our customers. Additionally, I would be remiss if I did not say a special word of thanks to Michael McRoberts, who as previously announced, is stepping down from his role as Chief Operating Officer, effective October 31. Mike has added immeasurable value to this organization over his many years of service, and I am sure he will continue to do so in his role as Senior Advisor to the Company and as an active member of our Board of Directors. Effective November 1, Jason Wilder will become the Company’s Chief Operating Officer, as previously announced. I am confident that this leadership transition will be seamless and that Jason will effectively lead the Company in his new role going forward,” said Rush.

Operations

Aftermarket Products and Services        

Aftermarket products and services accounted for approximately 61.5% of the Company’s total gross profit in the third quarter of 2024, with parts, service and collision center revenues totaling $633.0 million, down 1.6% compared to the third quarter of 2023. The Company achieved a quarterly absorption ratio of 132.6% in the third quarter of 2024, compared to 132.8% in the third quarter of 2023.  

“Our aftermarket revenue was down slightly year-over-year, but as I previously noted, was up compared to our second quarter results,” said Rush. “Although the freight recession continues, we saw sequential growth in the third quarter with respect to our over-the-road and wholesale customers for the first time since 2023. In addition, the refuse and public sector market segments continue to be bright spots with respect to Class 8 aftermarket sales, while medium-duty aftermarket sales continue to be strong across all market segments,” he continued.

“We are hopeful that declines in aftermarket sales revenues are behind us and that demand will begin to increase in 2025. Although we expect a typical seasonal decline in our fourth quarter aftermarket results, we believe we will begin a slow climb back to more normal market conditions starting in the first quarter of 2025,“ Rush explained. “We believe that our continued focus on strategic initiatives, such as planned maintenance packages and Xpress Services, will allow us to continue to outperform the market,” he added.

Commercial Vehicle Sales

New U.S. and Canadian Class 8 retail truck sales totaled 73,037 units in the third quarter of 2024, down 3.5% over the same period last year, according to ACT Research. The Company sold 3,604 new Class 8 trucks in the third quarter, a decrease of 16.7% compared to the third quarter of 2023, which accounted for 5.3% of the new U.S. Class 8 truck market and 1.6% of the new Canada Class 8 truck market. ACT Research forecasts U.S. and Canadian retail sales of new Class 8 trucks to total 264,000 units in 2024, a 12.5% decrease compared to 2023.

“Economic uncertainty and continued low freight rates continue to plague Class 8 carriers. However, considering these ongoing challenges, we were pleased with our sales results in the third quarter,” Rush said. “Although Class 8 demand remains weak in the over-the-road segment, our unique focus on specialty markets, including vocational and public sector, allowed us to achieve strong sales results to those customer segments, which we expect to continue in the fourth quarter,” he added.

“Our order intake improved slightly late in the third quarter. Consequently, we expect our new Class 8 truck sales to increase slightly in the fourth quarter compared to our third quarter results,” Rush said. “While we are pleased to see a slight uptick in demand, market conditions remain challenging and commercial vehicle inventory levels are near an all-time high industry-wide. Because of these factors, we believe that truck pricing will continue to be competitive and that new Class 8 truck sales will remain challenging through the first half of 2025,” he added.

New U.S. and Canadian Class 4 through 7 retail commercial vehicle sales totaled 68,923 units in the third quarter of 2024, down 1.1% over the same period last year, according to ACT Research. The Company sold 3,379 Class 4 through 7 medium-duty commercial vehicles in the third quarter, an increase of 4.2% compared to the third quarter of 2023, which accounted for 5.0% of the total new U.S. Class 4 through 7 commercial vehicle market and 2.9% of the new Canada Class 5 through 7 commercial vehicle market. ACT Research forecasts U.S. and Canadian retail sales for new Class 4 through 7 commercial vehicles to be approximately 273,200 units in 2024, a 2.5% increase compared to 2023.

“We continued to experience healthy demand from medium-duty customers across all of our customer segments in the third quarter. Production has stabilized, delivery lead times continue to improve, and we are, once again, proud to have outperformed the market in medium-duty commercial vehicle sales,” Rush said. Our strategic focus on achieving a diversified customer base has served us well in the medium-duty market, and we are pleased that our Class 4-7 commercial vehicle sales were wide-ranging across a variety of industry segments,” he stated.

“Looking ahead, we continue to monitor potential delays from body manufacturers that could impact deliveries of new Class 4 through 7 commercial vehicles. However, we believe that demand for medium duty commercial vehicles will remain solid in the fourth quarter, and we believe we are well-positioned to increase our market share,” Rush said.

The company sold 1,829 used commercial vehicles in the third quarter of 2024, a 1.8% increase compared to the third quarter of 2023. “Although the market is still experiencing weak used truck demand due to the aforementioned freight recession, tight credit and excess supply, we continue to successfully execute on our used truck sales strategies, which led to positive results in the third quarter. Used truck depreciation rates have largely returned to normal ranges, and we continue to manage our inventory levels, which we believe are appropriate given the anticipated increase in trade activity from our new truck customers,” Rush stated.

Leasing and Rental

Rush Truck Leasing operates 56 PacLease and Idealease franchises across the United States and Canada, with more than 10,000 trucks in its lease and rental fleet and more than 2,200 trucks under contract maintenance agreements. Lease and rental revenue decreased 0.4% in the third quarter of 2024 compared to the third quarter of 2023, primarily due to a slight decrease in rental utilization. “Our leasing and rental revenues were basically flat year-over-year. However, we continue to add new vehicles to our fleet, which will translate to lower operating costs going forward. We anticipate that rental utilization rates will improve in the fourth quarter, and we expect to see moderate growth in our leasing and rental revenues as we move into 2025”, Rush said.

Financial Highlights

In the third quarter of 2024, the Company’s gross revenues totaled $1.896 billion, a 4.3% decrease from $1.981 billion in the third quarter of 2023. Net income for the quarter was $79.1 million, or $0.97 per diluted share, compared to net income of $80.3 million, or $0.96 per diluted share, in the quarter ended September 30, 2023. In the third quarter of 2024, the Company recognized a one-time, pre-tax charge of approximately $3.3 million, or $0.03 per share, related to property damage caused by Hurricane Helene. In the third quarter of 2023, the Company recognized a one-time, pre-tax charge of approximately $2.5 million, or $0.02 per share, related to a fire loss at our San Antonio, Texas facility.

Aftermarket products and services revenues were $633.0 million in the third quarter of 2024, compared to $643.6 million in the third quarter of 2023. The Company delivered 3,604 new heavy-duty trucks, 3,379 new medium-duty commercial vehicles, 574 new light-duty commercial vehicles and 1,829 used commercial vehicles during the third quarter of 2024, compared to 4,326 new heavy-duty trucks, 3,244 new medium-duty commercial vehicles, 425 new light-duty commercial vehicles and 1,797 used commercial vehicles during the third quarter of 2023.

During the third quarter of 2024, the Company repurchased $0.2 million of its common stock pursuant to its stock repurchase plan and has repurchased a total of $77.4 million of the $150.0 million that is currently authorized by its Board of Directors. In addition, the Company paid a cash dividend of $14.2 million during the third quarter.

“There is no doubt that 2024 has been a challenging year for the commercial vehicle industry. However, I am extremely proud that our team has rallied behind our expense management and sales initiatives, which have allowed us to navigate this challenging operating environment while continuing to deliver value to our shareholders. We are committed to our long-term strategic initiatives, and I have confidence we will end this difficult year in a strong financial position,” said Rush.

Conference Call Information

Rush Enterprises will host its quarterly conference call to discuss earnings for the third quarter of 2024 on Wednesday, October 30, 2024, at 10 a.m. Eastern/9 a.m. Central. The call can be heard live via the Internet at
http://investor.rushenterprises.com/events.cfm.

Participants may register for the call at:
https://register.vevent.com/register/BId3cc30bd8c9c4a0b997370aa063270c3
While not required, it is recommended that you join the event 10 minutes prior to the start.

For those who cannot listen to the live broadcast, the webcast replay will be available at
http://investor.rushenterprises.com/events.cfm.

Rush Enterprises, Inc. is the premier solutions provider to the commercial vehicle industry. The Company owns and operates Rush Truck Centers, the largest network of commercial vehicle dealerships in North America, with more than 150 locations in 23 states and Ontario, Canada, including 124 franchised dealership locations. These vehicle centers, strategically located in high traffic areas on or near major highways throughout the United States and Ontario, Canada, represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus and Blue Bird. They offer an integrated approach to meeting customer needs – from sales of new and used vehicles to aftermarket parts, service and body shop operations plus financing, insurance, leasing and rental. Rush Enterprises' operations also provide CNG fuel systems (through its investment in Cummins Clean Fuel Technologies, Inc.), telematics products and other vehicle technologies, as well as vehicle up-fitting, chrome accessories and tires. For more information, please visit us at www.rushtruckcenters.com www.rushenterprises.com and www.rushtruckcentersracing.com, on Twitter @rushtruckcenter and Facebook.com/rushtruckcenters.

Certain statements contained in this release, including those concerning current and projected market conditions, sales forecasts, market share forecasts s and anticipated demand for the Company’s services, are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements only speak as of the date of this release and the Company assumes no obligation to update the information included in this release. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, competitive factors, general U.S. economic conditions, economic conditions in the new and used commercial vehicle markets, customer relations, relationships with vendors, inflation and the interest rate environment, governmental regulation and supervision, product introductions and acceptance, changes in industry practices, one-time events and other factors described herein and in filings made by the Company with the Securities and Exchange Commission, including in our annual report on Form 10-K for the fiscal year ended December 31, 2023. In addition, the declaration and payment of cash dividends and authorization of future share repurchase programs remains at the sole discretion of the Company’s Board of Directors and the issuance of future dividends and authorization of future share repurchase programs will depend upon the Company’s financial results, cash requirements, future prospects, applicable law and other factors that may be deemed relevant by the Company’s Board of Directors. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual business and financial results and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.

-Tables and Additional Information to Follow-

RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Shares and Per Share Amounts)
 
  September 30, December 31,
  2024
 2023
  (unaudited)  
Assets    
Current assets:    
Cash, cash equivalents and restricted cash$185,073 $183,725 
Accounts receivable, net 282,553  259,353 
Note receivable, affiliate 6,905   
Inventories, net 1,964,835  1,801,447 
Prepaid expenses and other 21,027  15,779 
Total current assets 2,460,393
  2,260,304 
Property and equipment, net 1,568,056  1,488,086 
Operating lease right-of-use assets, net 116,085  120,162 
Goodwill, net 430,004  420,708 
Other assets, net 73,933  74,981 
Total assets$4,648,471 $4,364,241 
     
Liabilities and shareholders’ equity    
Current liabilities:    
Floor plan notes payable$1,285,033 $1,139,744 
Current maturities of finance lease obligations 38,693  36,119 
Current maturities of operating lease obligations 16,855  17,438 
Trade accounts payable 173,777  162,134 
Customer deposits 87,114  145,326 
Accrued expenses 150,560  172,549 
Total current liabilities 1,752,032  1,673,310 
Long-term debt, net of current maturities 399,674  414,002 
Finance lease obligations, net of current maturities 92,061  97,617 
Operating lease obligations, net of current maturities 101,464  104,514 
Other long-term liabilities 29,712  24,811 
Deferred income taxes, net 170,571  159,571 
Shareholders’ equity:    
Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2024 and 2023    
Common stock, par value $.01 per share; 105,000,000 Class A shares and 35,000,000 Class B shares authorized; 62,307,564 Class A shares and 16,695,873 Class B shares outstanding in 2024; and 61,461,281 Class A shares and 16,364,158 Class B shares outstanding in 2023 820  806 
Additional paid-in capital 577,665  542,046 
Treasury stock, at cost: 1,299,589 Class A shares and 1,750,566 Class B shares in 2024; and 1,092,142 Class A shares and 1,731,157 Class B shares in 2023 (129,644) (119,835)
Retained earnings 1,638,257  1,450,025 
Accumulated other comprehensive income (loss) (3,953) (2,163)
Total Rush Enterprises, Inc. shareholders’ equity 2,083,145  1,870,879 
Noncontrolling interest 19,812  19,537 
Total shareholders’ equity 2,102,957  1,890,416 
Total liabilities and shareholders’ equity$4,648,471 $4,364,241 
       


RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
  Three Months Ended 
September 30,
 Nine Months Ended 
September 30,
  2024 2023 2024 2023
         
Revenues        
New and used commercial vehicle sales$1,163,255$1,235,767$3,586,882$3,648,286
Parts and service sales 633,045 643,623 1,909,672 1,942,979
Lease and rental 89,129 89,466 264,696 264,681
Finance and insurance 5,780 6,317 17,111 19,077
Other 4,924 5,567 16,799 20,536
Total revenue 1,896,133 1,980,740 5,795,160 5,895,559
Cost of products sold        
New and used commercial vehicle sales 1,053,512 1,113,294 3,239,431 3,287,998
Parts and service sales 399,973 410,935 1,204,360 1,216,441
Lease and rental 63,607 62,106 190,064 184,098
Total cost of products sold 1,517,092 1,586,335 4,633,855 4,688,537
Gross profit 379,041 394,405 1,161,305 1,207,022
Selling, general and administrative expense 239,741 257,132 754,774 770,631
Depreciation and amortization expense 19,134 15,872 51,376 44,731
Gain on disposition of assets 588 220 690 596
Operating income 120,754 121,621 355,845 392,256
Other income (expense) 149 133 370 2,384
Interest expense (income), net 17,664 14,194 55,101 37,415
Income before taxes 103,329 107,560 301,114 357,225
Provision for income taxes 23,819 26,926 71,422 87,277
Net income 79,420 80,634 229,692 269,948
Less: Net income attributable to noncontrolling Interests 288 356 291 940
Net income attributable to Rush Enterprises, Inc.$79,132$80,278$229,401$269,008
         
Net income attributable to Rush Enterprises, Inc. per share of common stock:        
Basic$1.00$0.99$2.91$3.30
Diluted$0.97$0.96$2.81$3.19
         
Weighted average shares outstanding:        
Basic 79,216 81,229 78,878 81,629
Diluted 81,884 83,987 81,607 84,251
         
Dividends declared per common share$0.18$0.17$0.52$0.45
         

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as Adjusted Net Income, Adjusted Total Debt, Adjusted Net (cash) Debt, EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow and Adjusted Invested Capital, which exclude certain items disclosed in the attached financial tables. The Company provides reconciliations of these measures to the most directly comparable GAAP measures.

Management believes the presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current and past periods. Management believes that investors should have the same information available to them that management uses to assess the Company’s operating performance and capital structure. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures utilized by the Company may not be comparable to similarly titled non-GAAP financial measures used by other companies.

  Three Months Ended
Commercial Vehicle Sales Revenue (in thousands) September 30, 2024 September 30, 2023
New heavy-duty vehicles$677,882 $756,071 
New medium-duty vehicles (including bus sales revenue) 361,813  332,860 
New light-duty vehicles 33,510  25,684 
Used vehicles 81,285  109,114 
Other vehicles 8,765  12,038 
     
Absorption Ratio 132.6% 132.8%
       

Absorption Ratio
Management uses several performance metrics to evaluate the performance of its commercial vehicle dealerships and considers Rush Truck Centers’ “absorption ratio” to be of critical importance. Absorption ratio is calculated by dividing the gross profit from the parts, service and collision center departments by the overhead expenses of all of a dealership’s departments, except for the selling expenses of the new and used commercial vehicle departments and carrying costs of new and used commercial vehicle inventory. When 100% absorption is achieved, then gross profit from the sale of a commercial vehicle, after sales commissions and inventory carrying costs, directly impacts operating profit.

Debt Analysis (in thousands) September 30, 2024 September 30, 2023
Floor plan notes payable$1,285,033 $1,121,490 
Current maturities of long-term debt   104,778 
Current maturities of finance lease obligations 38,693  36,128 
Long-term debt, net of current maturities 399,674  202,824 
Finance lease obligations, net of current maturities 92,061  103,513 
Total Debt (GAAP) 1,815,461  1,568,733 
Adjustments:    
Debt related to lease & rental fleet (526,443) (443,095)
Floor plan notes payable (1,285,033) (1,121,490)
Adjusted Total Debt (Non-GAAP) 3,985  4,148 
Adjustment:    
Cash and cash equivalents (185,073) (191,988)
Adjusted Net Debt (Cash) (Non-GAAP)$(181,088)$(187,840)
       

Management uses “Adjusted Total Debt” to reflect the Company’s estimated financial obligations less debt related to lease and rental fleet (L&RFD) and floor plan notes payable (FPNP), and “Adjusted Net (Cash) Debt” to present the amount of Adjusted Total Debt net of cash and cash equivalents on the Company’s balance sheet. The FPNP is used to finance the Company’s new and used inventory, with its principal balance changing daily as vehicles are purchased and sold and the sale proceeds are used to repay the notes. Consequently, in managing the business, management views the FPNP as interest bearing accounts payable, representing the cost of acquiring the vehicle that is then repaid when the vehicle is sold, as the Company’s floor plan credit agreements require it to repay loans used to purchase vehicles when such vehicles are sold. The Company has the capacity to finance all of its lease and rental fleet under its lines of credit established for this purpose, but may choose to only partially finance the lease and rental fleet depending on business conditions and its management of cash and interest expense. The Company’s lease and rental fleet inventory are either: (i) leased to customers under long-term lease arrangements; or (ii) to a lesser extent, dedicated to the Company’s rental business. In both cases, the lease and rental payments received fully cover the capital costs of the lease and rental fleet (i.e., the interest expense on the borrowings used to acquire the vehicles and the depreciation expense associated with the vehicles), plus a profit margin for the Company. The Company believes excluding the FPNP and L&RFD from the Company’s total debt for this purpose provides management with supplemental information regarding the Company’s capital structure and leverage profile and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. “Adjusted Total Debt” and “Adjusted Net (Cash) Debt” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, the Company’s debt obligations, as reported in the Company’s consolidated balance sheet in accordance with U.S. GAAP. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.

  Twelve Months Ended
EBITDA (in thousands) September 30, 2024 September 30, 2023
Net Income attributable to Rush Enterprises, Inc. (GAAP)$307,448 $367,334 
Provision for income taxes 98,145  117,229 
Interest expense 70,603  45,877 
Depreciation and amortization 66,475  58,851 
(Gain) on sale of assets 937  (618)
EBITDA (Non-GAAP) 543,608  588,673 
Adjustments:    
Interest expense associated with FPNP and L&RFD (71,439) (46,806)
Adjusted EBITDA (Non-GAAP)$472,169 $541,867 
       

The Company presents EBITDA and Adjusted EBITDA, for the twelve months ended each period presented, as additional information about its operating results. The presentation of Adjusted EBITDA that excludes the addition of interest expense associated with FPNP and the L&RFD to EBITDA is consistent with management’s presentation of Adjusted Total Debt, in each case reflecting management’s view of interest expense associated with the FPNP and L&RFD as an operating expense of the Company, and to provide management with supplemental information regarding operating results and to assist investors in performing analysis that is consistent with financial models developed by management and research analyst. “EBITDA” and “Adjusted EBITDA” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, net income of the Company, as reported in the Company’s consolidated statements of income in accordance with U.S. GAAP. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.

  Twelve Months Ended
Free Cash Flow (in thousands) September 30, 2024 September 30, 2023
Net cash provided by operations (GAAP)$311,922 $322,469 
Acquisition of property and equipment (384,033) (356,896)
Free cash flow (Non-GAAP) (72,111) (34,427)
Adjustments:    
Draws on floor plan financing, net 163,109  185,065 
Acquisitions of L&RF assets 285,404  261,685 
Non-maintenance capital expenditures 21,753  29,815 
Adjusted Free Cash Flow (Non-GAAP)$398,156 $442,138 
       

“Free Cash Flow” and “Adjusted Free Cash Flow” are key financial measures of the Company’s ability to generate cash from operating its business. Free Cash Flow is calculated by subtracting the acquisition of property and equipment included in the Cash flows from investing activities from Net cash provided by (used in) operating activities. For purposes of deriving Adjusted Free Cash Flow from the Company’s operating cash flow, Company management makes the following adjustments: (i) adds back draws (or subtracts payments) on the floor plan financing that are included in Cash flows from financing activities, as their purpose is to finance the vehicle inventory that is included in Cash flows from operating activities; (ii) adds back lease and rental fleet purchases that are included in acquisition of property and equipment (iii) adds back non-maintenance capital expenditures that are for growth and expansion (i.e. building of new dealership facilities) that are not considered necessary to maintain the current level of cash generated by the business. “Free Cash Flow” and “Adjusted Free Cash Flow” are both presented so that investors have the same financial data that management uses in evaluating the Company’s cash flows from operating activities. “Free Cash Flow” and “Adjusted Free Cash Flow” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, net cash provided by (used in) operations of the Company, as reported in the Company’s consolidated statement of cash flows in accordance with U.S. GAAP. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.

Invested Capital (in thousands) September 30, 2024 September 30, 2023
Total Rush Enterprises, Inc. Shareholders' equity (GAAP)$2,083,145 $1,899,612 
Adjusted net debt (cash) (Non-GAAP) (181,088) (187,840)
Adjusted Invested Capital (Non-GAAP)$1,902,057 $1,711,772 
       

“Adjusted Invested Capital” is a key financial measure used by the Company to calculate its return on invested capital. For purposes of this analysis, management excludes L&RFD, FPNP, and cash and cash equivalents, for the reasons provided in the debt analysis above and uses Adjusted Net Debt in the calculation. The Company believes this approach provides management a more accurate picture of the Company’s leverage profile and capital structure and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. “Adjusted Net (Cash) Debt” and “Adjusted Invested Capital” are both non-GAAP financial measures. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.

Contact:    
Rush Enterprises, Inc., San Antonio
Steven L. Keller, 830-302-5226


FAQ

What was Rush Enterprises (RUSHA) earnings per share in Q3 2024?

Rush Enterprises reported earnings of $0.97 per diluted share in Q3 2024.

How much dividend did Rush Enterprises (RUSHA) declare for Q3 2024?

Rush Enterprises declared a cash dividend of $0.18 per share for both Class A and Class B Common Stock.

What was Rush Enterprises (RUSHA) absorption ratio in Q3 2024?

Rush Enterprises achieved an absorption ratio of 132.6% in Q3 2024.

How did Rush Enterprises (RUSHA) aftermarket revenue perform in Q3 2024?

Aftermarket revenue decreased 1.6% year-over-year to $633.0 million in Q3 2024.

Rush Enterprises Inc

NASDAQ:RUSHA

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4.62B
69.87M
1.28%
105.14%
4.8%
Auto & Truck Dealerships
Retail-auto Dealers & Gasoline Stations
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United States of America
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